An Act to prohibit a hospital from reporting medical debt for collection in certain situations.

Be it enacted by the Legislature of the State of South Dakota:

Section 1. That a NEW SECTION be added to chapter 54-1:

A hospital, as defined in § 34-12-1.1, is prohibited from reporting medical debt to a medical debt collector for the purpose of collecting the medical debt:

(1) If the individual informs the hospital of an appeal pertaining to a denial of coverage by the individual's insurance provider, provided the prohibition terminates when the individual receives a final determination from the insurance provider;

(2) Before the hospital has made reasonable efforts to determine whether the individual is eligible for assistance under the hospital's financial assistance program and, if eligible, before a decision is made by the hospital on the individual's application for financial assistance;

(3) Before the hospital has provided the individual with an itemized statement of health care services or treatments provided to an individual;

(4) For thirty days after notifying the individual in writing, by certified mail, or by other traceable delivery method, that a collection action will commence, absent additional action by the individual;

(5) While the individual negotiates, in good faith, with the hospital on the final amount of a bill for services or treatments provided to an individual; or

(6) While an individual is in compliance with all terms of a payment plan entered into with the hospital.

An individual who claims to be adversely affected by this section is permitted to bring a civil action against the hospital for the recovery of actual damages suffered and attorney's fees.

For purposes of this section, "medical debt" means a debt arising from health care services or treatments provided to an individual.

For purposes of this section, "medical debt collector" means a person who collects or attempts to collect a medical debt.